OrbitaxSupreme Court of Iceland: Interest on a loan and carry-forward of losses by acquiring company denied due to lack of real operational purpose
|Approved Changes|Iceland
The Supreme Court of Iceland (the Court) gave its decision on 23 January 2014 in the case of Samherji hf. v. the Icelandic Government (No. 529/2013). Details of the decision are summarized below.
(a) Facts. Company F (Co F), which was owned by majority shareholders of Company S (Co S), entered into considerable debt to acquire shares in Co S (i.e. a leveraged takeover). Both companies were subsequ…
